American Airlines Sends
Warning to Unions

American Airlines sent letters to three
employee unions reminding them of labor
laws as several workers plan protests of
executive bonuses that were paid out in
April. The letters are going out to the
Allied Pilots Association, Association of
Professional Flight Attendants and the Transport
Workers Union. The three unions are protesting
payouts of as much as $200 million to nearly
900 American Airlines senior executives.
The unions have opposed the large payouts
in light of an estimated $6.4 billion in
wages and benefits the unions have given
up since 2003 as part of concessions made
to keep the airline out of bankruptcy.

As part of the 2003 restructuring that helped
American Airlines avoid Chapter 11 bankruptcy,
labor and management agreed to an Annual
Incentive Program (AIP). The three unions
collective bargaining agreements cover the
AIP, which was structured to align the interests
of management and other employees. The unions
collective grievances cite the scheduled
cash bonuses as "a violation of the
terms of the AIP.'

The leaders
of the three unions issued the following
joint statement:
The elected leaders of our three unions
and the employees we represent remain deeply
concerned over the irrationality of tying
cash bonuses solely to the performance of
our stock. Moreover, upon reviewing contractual
language governing the AIP, we believe these
cash bonuses to be in violation of our collective
bargaining agreements.' The letter added: "If
we are unable to reach an agreement through
continued dialogue with senior management,
the grievance arbitration process ensures
an eventual resolution. 'A quick scan of
the airline industry today illustrates all
too clearly what happens when labor and
management maintain a traditional, adversarial
approach with each other.'

Flight
Attendants & Pilots Picket
The flight attendants union has organized
a rally and march from its headquarters
to American's main corporate office building.
The group opted to hold nationwide informational
picketing and protest, which took place
on April 17. Meanwhile, the pilots union
held a national membership unity rally and
march from its Fort Worth headquarters.
Hundreds of pilots signed up to participate,
the group claimed. Federal law prohibits
airline's employees from participating in
activities that disrupt the airline's operations. "We
expect the unions will respect the law,
and they're free to express their opinions
as they see fit within the law itself,"
a company official told the Dallas Business
Journal.

"Even though American management
has touted rhetoric such as 'Pull Together
- Win Together' only the top 874 AA senior
executives will reap the rewards of employee
sacrifices," the Association of Professional
Flight Attendants said in a statement. "The
flight attendants believe that enough is
enough.'

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